Date: | 2008- |
Web: | Official website of the programme |
Description: | The Basic Solidarity Pension, which was introduced as a result of social security reform of 2008 together with Solidarity Pension Contribution for old age and disability, is given to older people with higher levels of social vulnerability. The recipients are all individuals who are not entitled to a pension under a pension system and meet the requirements set by law. |
Characteristics
Target population: | Adults older than 65 years old who do not receive contributory pensions and individuals with physical and mental disabilities aged between 18 and 65. Must meet a minimum of 20 years living in Chile and belong to the first three income quintiles. |
Geographic scale: | National |
Targeting method: | 1) Proxy means test. 2) Categorical: Requirements for residence (20 years for PBS-Older Persons and 5 years for APS - disability), age and disability condition. |
Instrument of selection: | Thecnical Instrument of Targeting and Pension Targeting Score |
Registry of recipients: | Social security information system |
Exit strategies or criteria: | Do not continue within the poorest 60%, start receiving a contributory pension or the beneficiary dies |
Comments: | As part of the measures to address the effects of the pandemic, the Covid-19 Emergency Family Income (IFE) was announced in April 2020. IFE seeks to support the most vulnerable households with informal jobs and whose incomes have been reduced by the health crisis caused by Covid-19. Also, between June and October 2020, the coverage and amounts of the Emergency Family Income (IFE) were extended. Later, other extensions were announced: the Covid Christmas Grant (December 2020); the Covid Grant (January, February and March 2021); the extended IFE (April and May 2021); and the Universal IFE (June, July, August and September 2021). Households with at least one member receiving the Basic Old Age Solidarity Pension (PBSV) or Disability Pension (PBSI) will receive the IFE with no need to apply. For more information on these measures, see the observatory of social protection measures to address COVID-19 of ECLAC's Social Development Division ([online] https://dds.cepal.org/observatorio/socialcovid19/listamedidas.php?id_pais=chl) and the Emergency Family Income reports of the Ministry of Social Development and Family of the Government of Chile ([online] https://www.desarrollosocialyfamilia.gob.cl/informacion-social/informe-ingreso-familiar-de-emergencia/descargar-informes-de-ingreso-familiar-de-emergencia). In 2022, the old age components is replaced by the Guarantee Universal Pension (PGU). The Disability Basic Solidarity Pension remains in place. |
Institutionality
Legal framework: | Law Nº 20,255 |
Responsible organization(s): | Ministry of Labour and Social Welfare |
Executing organization(s): | Instituto de Previsión Social (IPS, ex-INP) (Social Welfare Institute ) |
Source of funding: | Pensions Fund Reserve; Government of Chile |
1) Pensión básica solidaria de vejez (Basic Solidarity Pension for Older Persons)
Recipient(s): | Adults over 65 years of age without pension rights |
Mode of transfer: | Flat transfer |
Mode of delivery: | Cash withdrawal |
Periodicity of delivery: | Montlhy |
Recipient of the transfer: | Direct participant |
Maximum per household: | Does not have |
Conditionalities: | Does not have |
Sanctions: | … |
Comments: | This type of pension is only compatible with the pensions granted according to Law No. 8056 (grace), 19,123 and 19,980 (Rettig Law), 19.234 (exempt) and 19 992 (Valech Law), as long as these are below the PBS (in which case the amount of the transfer will be obtained by subtracting the pensions received by the applicant of the above mentioned law of the basic older people's pension). This component was closed and replaced by the Guarantee Universal Pension (PGU) in 2022. |
Amount : | As of July 1, 2020, people ages 65 to 74 receive CLP $141,374; between 75 and 79 years old CLP $147,029; and CLP $169,649 for people over 80 years of age. |
2) Pensión básica solidaria de invalidez (Basic Solidarity Pension for people with disability)
Recipient(s): | Adults between 18 and 65 years of age with physical and /or mental disabilities. |
Mode of transfer: | Flat transfer |
Mode of delivery: | Cash withdrawal |
Periodicity of delivery: | Monthly |
Recipient of the transfer: | Direct participant |
Maximum per household: | Does not have |
Conditionalities: | Does not have |
Sanctions: | … |
Comments: | The Basic Solidarity Pension for people with disability is incompatible with any other pension of any other pension system. |
Amount : | From July 1st, 2020, the amount corresponds to CLP $ 141,374. |
3) Ingreso Familiar de Emergencia - IFE (Emergency Family Income)
Recipient(s): | As part of the measures to deal with the effects of the Covid-19 pandemic and social isolation, recipients of the Old Age or Disability Solidarity Pension Contribution were entitled to receive the Emergency Family Income (IFE). |
Mode of transfer: | Depending on the characteristics of the family: The higher the social vulnerability of the family and its size, the higher the amount. |
Mode of delivery: | Transfer to bank account |
Periodicity of delivery: | Monthly |
Recipient of the transfer: | Direct recipient |
Maximum per household: | … |
Conditionalities: | … |
Sanctions: | … |
Comments: | Initially, IFE´s support was delivered from May to October 2020, and later granted as Bono Covid Navidad in December 2020. Subsequently, through the Extended IFE (which includes Bono Covid) it was delivered from January to May 2021; while with the Universal IFE from June to November 2021 and finally as Labor IFE it was granted from January to September 2022. For more information on these measures, see the observatory of social protection measures to address COVID-19 of the Social Development Division of ECLAC ([online] https://dds.cepal.org/observatorio/socialcovid19/listamedidas.php?id_pais=chl) and the reports of the Emergency Family Income of the Ministry of Social Development and Family of the Government of Chile ([online] https://www.desarrollosocialyfamilia.gob.cl/informacion-social/informe-ingreso-familiar-de-emergencia/descargar-informes-de-ingreso-familiar-de-emergencia). |
Amount : | … |
Annual Report, Third Report August 2011-December 2012
Author: | Consejo Consultivo Previsional |
Date: | 2012 |
Publication info: | Online |
Link: | See Webpage |
Topic: | Annual Report |
First-round impacts of the 2008 Chilean pension system reform
Author: | Behrman, J., Calderon, M., Mitchell, O., Vazquez, J. and Bravo, D. |
Date: | 2011 |
Publication info: | PARC Working Paper, N° 33, Filadelfia, University of Pensilvania |
Link: | See Webpage |
Topic: | Impact Evaluation |
Money can buy me life: The effect of a basic pension on mortality: A regression discontinuity design
Author: | Miglino, E., Navarrete, N., Navarrete, G., and Navarrete, P. |
Date: | 2018 |
Publication info: | CAF Working Paper No. 2018/12 |
Link: | See Webpage |
Topic: | Impact evaluation |
The Effects of Means-tested Noncontributory Pensions on Poverty and Well-being: Evidence from the Chilean Pension Reforms
Author: | Italo López García and Andrés Otero |
Date: | 2017 |
Publication info: | Michigan Retirement Research Center, University of Michigan; WP 2017-358 |
Link: | See Webpage |
Topic: | Impact Evaluation |
Monthly Statistical Report
Author: | Subsecretary of Social Security |
Date: | 2016 |
Publication info: | |
Link: | See Webpage |
Topic: | Report |
Annual Report, Fifth Report June 2014 to April 2015
Author: | Social Security Advisory Council |
Date: | 2015 |
Publication info: | |
Link: | See Webpage |
Topic: | Report |
The impact of Chile`s 2008 Pension Reform on Labor force participation, Pension savings, and gender equity
Author: | Joubert, C and Todd, P |
Date: | 2011 |
Publication info: | Working Paper |
Link: | See Webpage |
Topic: | Impact Evaluation |
Formal labor market and pension wealth: Evaluating the 2008 Chilean pension reform
Author: | Attanasio, O., Meghir, C. and Otero, A. |
Date: | 2011 |
Publication info: | Working Paper |
Link: | See Webpage |
Topic: | Impact Evaluation |
"Programs of poverty alleviation Puente and Oportunidades. The actors' point of view"
Author: | Arriagada, Irma and Charlotte Mathivet |
Date: | 2007 |
Publication info: | Social Policy Series (134), Santiago. ECLAC |
Link: | See Webpage |
Topic: | Evaluation |